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№ 01Buying & Selling a Business · Warehousing & 3PL · Canada-Wide

Buying or selling a warehousing or 3pl business

Third-party logistics and warehousing deals rarely turn on the racking or the forklifts — they turn on whether the customer contracts that fill the space can actually move to a new owner, and whether the building itself checks out on zoning, fire code, and environmental history.

Part of Transportation & Logistics — see the family overview.

№ 01.1The Numbers That Drive the Deal

The numbers behind the deal

Every figure below is a typical Canadian deal-market pattern, not a valuation — use it to sanity-check what you're being told.

MetricTypical benchmarkUse this to
Structure follows contract valueA share sale is often preferred when major customer logistics contracts carry anti-assignment or change-of-control clauses that would otherwise need individual renegotiation.Decide structure based on how exposed your customer contracts are to a change of ownership.
Real estate weightAn owned or long-leased industrial facility can dominate a warehousing deal's valuation more than the logistics operation running inside it.Separate what you're paying for the real estate from what you're paying for the operating business.
Customer concentrationRevenue concentrated in a small number of shipper or 3PL contracts raises diligence scrutiny and can compress the multiple a buyer is willing to pay.Weigh customer concentration the same way a lender would before you set a price.
WSIB experience ratingA strong claims and safety history in a labour-intensive warehouse operation supports value; a spotty one invites closer scrutiny.Check WSIB standing early — it's a real, checkable indicator of how the business has been run.
Equipment vs. real estate splitRacking, forklifts, and dock equipment are valued separately from any bundled real property, not folded into a single blended number.Keep the equipment and real-estate components of the price distinct when comparing deals.
1

Customer logistics contracts with anti-assignment or change-of-control clauses can require third-party consent before a deal closes, or need renegotiation, regardless of purchase structure.

2

A Phase I environmental assessment on an owned or long-leased industrial facility is standard diligence, not an optional add-on, because prior uses of an industrial site can create liability that follows the property.

3

WSIB and staff history travel differently depending on structure — verified before you price the deal, not assumed to carry over cleanly either way.

№ 01.2The Deal, End to End

Six steps, from offer to ownership

The same sequence underlies almost every warehousing or 3pl business deal — what changes from deal to deal is how long each step takes, and which one becomes the bottleneck.

Reaching an agreement

01

Offer & conditions

The offer sets price and key terms — for a warehousing or 3pl business it should build in the conditions that actually matter from day one, not just financing.

usually 1–2 weeks
02

Agreement of purchase & sale

The APS fixes price, structure — asset or share — and closing date, plus the reps, warranties, and holdbacks that protect you if diligence turns up something different than promised.

1–3 weeks to negotiate
03

Key transfers open in parallel

Customer contract consents (change-of-control), Real property or lease (industrial), Environmental Phase I, Equipment & PPSA, Staff/WSIB history all start moving at once, on separate clocks — this is usually where warehousing or 3pl business deals are won or lost.

often the critical path

Getting to closing

04

Diligence & searches

Corporate, PPSA lien, and litigation searches confirm what you're actually buying; we chase down licence standing and records the seller doesn't always have to hand.

2–4 weeks, in parallel
05

Closing day

Funds, keys, and signed documents change hands, alongside any inventory count and interim authorizations that bridge the gap until final transfers are confirmed.

1 day, once conditions are met
06

After closing

We track final licence confirmation and the staff transition through to completion — nothing is left for you to chase once the deal is done.

1–2 week tail
Most single-location deals close in 60–120 daysLarger, multi-location, or regulator-heavy deals typically run longer.
№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in almost every warehousing or 3pl business deal — and it changes what you're buying, what you're taking on, and how it's taxed.

QuestionAsset purchaseShare purchase
What you buyThe business's equipment, inventory, individually assigned customer contracts, and the lease or facility.The shares of the corporation itself, including its contract book and safety history.
Customer contractsReassigned individually — consent needed where the contract has an anti-assignment or change-of-control clause.Stay with the corporation automatically, though notice or consent may still be required depending on the clause's wording.
Real property or leaseTransferred by deed, or the lease is assigned separately from the business sale.Stays with the corporation if held there, avoiding a separate property transfer.
Environmental exposureGenerally stays with the seller's existing corporation, subject to what diligence turns up.Comes with the company, including any historical exposure not yet identified.
WSIB experience ratingBuyer generally starts its own account and rating.Carries forward with the corporation.
Tax angleBuyer gets a stepped-up cost base on the assets purchased.Seller may access the lifetime capital gains exemption on qualifying shares.
Typical use in this dealSmaller, single-facility operators without major contract entanglements.Larger operators where the customer contract book is the main value driver.
What you buy
Asset sale

The business's equipment, inventory, individually assigned customer contracts, and the lease or facility.

Customer contracts
Asset sale

Reassigned individually — consent needed where the contract has an anti-assignment or change-of-control clause.

Real property or lease
Asset sale

Transferred by deed, or the lease is assigned separately from the business sale.

Environmental exposure
Asset sale

Generally stays with the seller's existing corporation, subject to what diligence turns up.

WSIB experience rating
Asset sale

Buyer generally starts its own account and rating.

Tax angle
Asset sale

Buyer gets a stepped-up cost base on the assets purchased.

Typical use in this deal
Asset sale

Smaller, single-facility operators without major contract entanglements.

We tell you which structure fits — before you sign anything.

№ 01.5Due Diligence, Both Sides

What gets checked before closing

Different lists depending on which side of the deal you're on — both matter for how smoothly closing goes.

If you're buying

  • Three years' financials, normalized
  • Full customer contract list with anti-assignment and change-of-control terms flagged
  • WSIB clearance certificate and experience-rating history
  • Title/zoning search and fire-code compliance status on the facility
  • Phase I environmental assessment, or a documented decision on whether one is warranted
  • PPSA and lien searches on material-handling equipment
  • Lease, if applicable, and assignment terms
  • Staff roster and ESA continuity obligations
What we do: run the searches, chase the certificates, and flag anything that changes your price or your conditions.

If you're selling

  • Clean books and up-to-date filings
  • Customer contracts organized with consent requirements identified early
  • WSIB account in good standing
  • Facility compliance history (fire code, zoning) documented
  • Equipment lien payouts lined up
  • A staff plan for closing day
What we do: tell you what a buyer's lawyer will ask for — before they ask for it.
№ 01.6Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Other costs to budget for, depending on your deal: environmental assessment fees if a Phase I is warranted, landlord's consent costs if the facility is leased, WSIB clearance certificate fees, a broker's success fee if the deal was listed, and equipment lien discharge costs. We confirm all of these once we see your agreement.
Most deals start here

An owner-run business

A single-facility 3PL or warehousing operator with a straightforward lease and a handful of customer contracts — one buyer, one seller.

Start my file
A bit more involved

A larger or more complex deal

A multi-facility operator with owned industrial real estate, a concentrated customer contract book carrying change-of-control clauses, or a Phase I environmental assessment in scope.

Book a consultation

Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.

№ 01.7The Landscape

Warehousing & 3PL, in context

Typical deal size
$500K–$8M
Typical closing
60–120 days
Usual structure
Share sale

Typical patterns across Canadian deals — not a quote or advice; every deal is confirmed on its own facts.

№ 01.8Before You Ask

Common questions

Our biggest customer contract has a change-of-control clause — does that mean the deal needs the customer's sign-off?

It can. A change-of-control or anti-assignment clause is reviewed early, because it can mean the customer's consent is required before the deal closes, or it can shape which structure — asset or share — makes more sense. We flag this in the first pass through your contracts, not after an agreement is signed.

Do we need a full environmental assessment just to sell a warehouse we've operated cleanly for years?

Not automatically — the scope depends on the facility's age, prior uses, and what's stored or handled on site. A Phase I is standard diligence on most industrial properties precisely because history, not current practice, is what creates exposure. We scope the right level of review to your specific facility.

Does our WSIB experience rating actually affect the deal?

It can factor into diligence, particularly in a labour-intensive warehouse operation, since it's one indicator of how the business has been run. On a share sale it carries forward with the corporation; on an asset sale, the buyer generally starts its own account. Either way, it gets reviewed, not assumed.

Why do 3PL and warehousing deals lean toward share sales more than most small-business sales?

Mainly because of the customer contracts. Reassigning a book of shipper or 3PL agreements individually can trigger consent requirements the parties would rather avoid, so keeping the existing corporation — and its contracts — intact is often the simpler path. It isn't automatic, though; it depends on what your specific contracts say.

How does zoning or fire-code compliance on the facility affect a sale that isn't a real estate deal?

Even where the real estate itself isn't changing hands, a leased or owned industrial facility's racking, sprinkler, and fire-code compliance gets reviewed, because a gap found after closing becomes the new owner's problem to fix. It's a standard, not exceptional, part of diligence on this sector.

№ 01.9Resource Register

Official links

ResourceOfficial link
WSIB — clearance certificatesVisit www.wsib.ca
Ontario environmental compliance (MECP)Visit www.ontario.ca
Personal Property Security Registration (PPSR)
Equipment lien searches
Visit www.ontario.ca

Where we close warehousing or 3pl business deals

Ready to begin?

Tell us about your warehousing or 3pl business deal — we'll point you the right way and confirm the cost in writing before any work begins.

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